No investment is bad, but the decisions are because whenever we invest, the sheer motive behind it is to gain the maximum profit on that. So, it is always advisable to conduct a thorough analysis and research about the risk factors, asset classes, market conditions & ongoing trends, and other factors. The rule remains the same for the crypto market, as we all know how immensely the popularity of criptomonedas is growing and drawing the interest of more new investors. Unfortunately, these investors lose a lot of money due to a lack of knowledge and security loopholes. In the following article, we will focus on some common and repeated mistakes made by these investors and how to avoid them.
- Lack of adequate information: Crypto trading comes with a decent learning curve about the various order types, the quality of the crypto projects, and the goals of the crypto companies. The order type helps the traders to zero down on the buying or selling decision of the asset depending on the prices that best suit them at the given time and market conditions.
- Paying huge processing fees: The crypto exchange platforms charge gas fees, which means the transaction cost is deducted from the investors because of the resources, and it depends on the demand, supply, and network capacity. Using the credit card can burn holes in the pocket because they are charged way too much, and the credit card company imposes separate charges. To avoid this, one must look for reliable exchange platforms for cryptos which incur minimum fees.
- Avoid short-cuts: While Bitcoin and Ethereum may sound exciting, novice investors are tempted to ganar criptomonedas in a short-term investment. However, this may lead to massive loss sometimes due to naive trading decisions, so instead of becoming rich quickly, one should focus on making smart investment choices.
- Using online wallets: Another common mistake people need to correct is storing the cryptos in their online wallets and not in the specific digital wallet. Cryptocurrency is a digital currency, so the digital wallet is a must, or at least one can secure them in an offline hardware wallet like a USB stick which should be highly encrypted. Storing in an online wallet is very unsafe, making the crypto vulnerable to scammers and cyber thieves.
- Managing the digital wallet: As mentioned above, transferring or maintaining cryptos requires digital wallets. Hence a very careful and focused approach is needed, from assigning and safeguarding the passwords for these digital wallets and typing the correct address while transferring the cryptos. Once forgotten the passwords and the seed phrase, the crypto is unrecoverable. Similarly, one wrong input in the address might transfer the ganho de criptografia to the erroneous wallet address, and after this, it won’t be recoverable. Although there are recovery services to help in such situations, they are highly expensive.
Although technological advancements have helped investors and traders keep their buying and selling activity under total control with no third-party involvement, the crypto market still has a peculiar structure and conditions. It can get overwhelming for the ones who are just starting, but with the right amount of awareness and instincts, crypto trading becomes all fun and games.